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Pete Najarian: Down 10%, Think About Adding To RIM Position

Shares of RIM plunged 10% in extended trade after the stock was halted for 20 minutes; the down move came after the BlackBerry maker lowered its earnings and revenue guidance for the first quarter.

RIM blamed the move on weak shipments of its BlackBerry phones and a shift toward handsets with lower price points. The firm has been struggling to compete against Apple's popular iPhone and other rivals of the smartphone market.

"The demand for RIM smartphones simply wasn't as strong as expected," explains Fast Money host Melissa Lee.

By the numbers, the company said it expects first-quarter earnings of between $1.30 to $1.37 a share short of analyst expectations of $1.48 a share.

Also, RIM said it sees first quarter revenue slightly below its previous guidance of between $5.2 and $5.6 billion.

How should you trade it?

Trader Joe Terranova says, “it’s not a place I’d want to be.” Trader Tim Seymour agrees. "Talk about a broken chart," he says.

Top hedge fund manager Anthony Scaramucci shares that outlook. Looking at the fundamentals, he's concerned about RIM's lack of product development. Scaramucci thinks the stock is lagging because the company is lagging in innovation and new product design. He says, unless they can generate some exciting new ideas, the company may be in trouble.

Pete Najarian is on the other side of the trade. He thinks the stock has been beaten down so badly it's becoming attractive. And sees some positive data points in the second half of the year. “I know the report looks awful,” he says, “but down 10% it may be an opportunity. I own a little RIM right now and I'd look to start adding.”



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Trader disclosure: On April 28, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Najarian Owns (AAPL); Najarian Owns (AKAM); Najarian owns (C); Najarian owns (CVS); Najarian own (MSFT); Najarian owns (VLO); Najarian owns (XLF); Terranova owns ( TCK); Terranova owns (SLV); Terranova owns (NFLX); Terranova owns (APA); Terranova owns (OXY); Terranova owns (FCX); Terranova owns (BAX); Terranova owns (IBM); Terranova owns (HOC); Terranova owns (UPL); Terranova owns (AKAM); Terranova owns (V); Terranova owns (CVI); Terranova owns (BX); Weiss owns (DE); Weiss owns (DE) puts; Weiss owns (AKAM); Weiss owns (QCOM); Weiss owns (VZ); Weiss owns (MSFT); Weiss owns (UUP); Weiss owns (DZZ); Weiss owns (TBT); Weiss owns (GDX); Weiss owns (JPM); Weiss owns (COP); Weiss owns (DVN)

For Matt Hougan
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For Joe Terranova
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For Les Funtleyder
Miller Tabak + Co., LLC is a registered market maker in the following securities: No companies mentioned in this report. The analyst does not have equity positions in any of the stocks mentioned. No individual at Miller Tabak + Co., LLC holds a position on the board of directors of a covered company, nor does an individual at a covered company do so at Miller Tabak + Co., LLC. Miller Tabak + Co., LLC does not own one percent or more of the outstanding shares of the company discussed in this report.

CNBC.com with wires.